VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/13/12 -- Aurcana Corporation (TSX VENTURE:AUN)(OTCQX:AUNFF) ("Aurcana" or the "Company") today is pleased to report its unaudited financial results for the third quarter ending September 30, 2012. The summary of the selected financial information should be read in conjunction with the unaudited financial statements and the related management's discussion and analysis dated November 09, 2012 together referred to as the "Financial Statements", which have been filed on SEDAR (www.sedar.com) and the Company's website (http://www.aurcana.com). All figures are in US dollars unless otherwise noted.
The Q3 2012 Earnings Webcast and Conference Call has been scheduled at 11:00am Pacific Time (2:00 pm Eastern Time) on Tuesday, November 13, 2012. See bottom of press release for details.
Mr. Lenic Rodriguez, Aurcana's President & CEO, said: "We are very pleased to report record revenues up 20% this quarter compared to one year ago. The company produced 54% more silver ounces than it did in Q3, 2011. The increase in revenues was achieved despite a 16% decrease in silver prices this quarter compared to one year ago, Our La Negra mine was able to achieve a very low 10 cents cash cost per silver oz, net of by-products this quarter. The increase in production is expected to continue while we work to raise production capacity at La Negra and very soon start commercial production at Shafter mine in Texas. Aurcana is strategically positioned to become a senior silver producer."
THIRD QUARTER 2012 HIGHLIGHTS
-- Revenues in Q3, 2012 were $15.0 million a 20% increase from Q3, 2011.
Year to date revenues were $40.6 million.
-- Production for Q3, 2012 was 376,687 silver ounces, up 54% from Q3, 2011
and 718,063 silver ounces equivalent, up 67% from Q3, 2011. The year to
date production was 1,037,210 silver ounces and 1,899,280 silver ounces
-- The cash cost for Q3, 2012 per silver oz net of by-products, was $0.10
and the cash cost per silver equivalent oz was $9.31. The year to date
cash cost per silver oz net of by-products was negative at $(0.21) and
the cash cost per silver equivalent oz was $9.05.
-- Earnings from mining operation in Q3 2012 were $6.4 million, down 6%
from Q3, 2011 due to lower metal prices. Year to date earnings were
-- Net income in Q3, 2012 was $3.4 million and $7 million year to date.
-- Operating cash flow (after taxes before movements in working capital)
for Q3, 2012 was $4.83 million and $15.23 million year to date.
-- Ore milled in Q3, 2012 was 196,843 tonnes, up 64% from Q3, 2011 and
504,005 tonnes year to date.
-- The average net revenue per payable equivalent silver ounce sold in the
third quarter of 2012 was $25.79, 16% lower than $30.83 per ounce in the
third quarter of 2011.
-- The average grade of silver increased 7% YTD to an average of 80 grams
per ton in 2012, compared to 75 grams per ton in 2011.
-- Revenues, earnings from mining operations and production figures
originate from La Negra mine.
La Negra Mine Highlights
-- La Negra released on August 28, 2012 a new compliant resource NI 43-101
estimated 115 million silver ounces Measured plus Indicated.
-- Ore milled was 196,843 tonnes in Q3 2012, of which 57% (112,781 tonnes)
was mined from NI 43-101 Measured plus Indicated Resources and 43%
(84,062 tonnes) was mined from other mineralized zones.
-- 32% increase in milled tonnes processed for a total of 504,005 milled
tonnes during the nine months ended September 2012, (2011: 380,703
-- La Negra cost per milled tone was 4% lower at $32.41 in Q3 2012 vs.
$33.85 in Q3 2011.
-- La Negra current installed capacity is 2,500tpd. The mine is now milling
at a rate greater than 2,300 tpd.
-- In order to allow for an increase in future production, La Negra mine
is now working to increase mill capacity to 3,000 tpd in 2013.
-- Mining operations and exploration drilling at La Negra continue to
delineate additional mineralized zones, either between or as extensions
of existing mineralized zones. Drill crews have completed 9,399 metres
of diamond drilling during 2012.
Shafter Mine Highlights
-- During the third quarter, the Shafter Silver Mine in Texas continued the
commissioning and testing of the processing plant.
-- The open pit development continued during Q3, providing feed to the
-- Underground development also continued during Q3. Underground production
of ore will commence once the secondary escape way is completed, which
scheduled to be operational before the end of November 2012.
-- The commissioning and testing phase is currently underway at Shafter
Mine working towards achieving commercial production in late Q4 2012.
-- Starting in late November 2012, the plant is planning to operate at a
production throughput of 600 tons per day during the remainder of Q4.
Continued development, as part of the usual ramp up phase, is required
in order to sustain the ramp up to the 1,500 tons per day.
-- In order to maintain and increase a consistent and continuous feed,
additional thickeners have been ordered. The additional equipment will
improve the dewatering process of the plant capacity enabling the mill
feed to work towards 1,500 tons per day. The additional thickener tanks
are expected to be commissioned by the start of Q1, 2013. They are
expected to have a positive contribution to our production ramp up. The
need for additional filter presses is also currently being assessed in
order to understand the improvements they could provide.
-- Shafter mine has hired skilled and experienced personnel and is
continuously running training programs for the local workforce. During
Q3 technical personnel from La Negra mine, have been providing valuable
technical and operational advice to Shafter.
-- During the third quarter the surface core drilling program was expanded
with the addition of a second drill dedicated to the "near mine" area.
The program focus continued to be the discovery of a plumbing system
below the Presidio and Shafter deposits. Drill targets were selected on
the basis of well mineralized historic intersections and or associated
fault structures. Twenty holes have been completed to the end of the
third quarter for a total of 23,764 feet (7,797 m).
-- Ten holes intersected mineralization in the Shafter and Presidio mine
horizons, results for which will be incorporated into the mine model.
Financial Statements and MD&A
To read complete Financial Statement and MD&A please visit: www.aurcana.com, or www.sedar.com.
About Aurcana Corporation
La Negra Mine current installed capacity is 2,500tpd. In order to allow for an increase in future production, La Negra mine is now working to increase mill capacity to 3,000 tpd in 2013.
La Negra has a NI 43-101 M&I resource of 115.1 mm oz silver (at a grade of 131.3g/t), 1,418.7 mm lbs Zn (at a grade of 2.36%), 539.5 mm lbs Pb (at a grade of 0.91%) and 269.5 mm lbs Cu (at a grade of 0.49%) and an Inferred Resource of 56.5 mm oz silver (at a grade of 126.1g/t), 657.4 mm lbs Zn (at a grade of 2.14%), 263.0 mm lbs. Pb (at a grade of 0.88%) and 132.3 mm lbs Cu (at a grade of 0.42%).
The Shafter Mine mill was commissioned on April 1, 2012 and is expected to commence commercial production in late Q4 2012. The Shafter Silver Mine is scheduled to produce 3.8 million ounces of silver over 12 months when is operating at 1,500tpd capacity.
Shafter has a NI 43-101 M&I Resource of 23.9 mm oz of silver (at a grade of 267.1 g/t) and an Inferred Resource of 22.79 mm oz of silver (at a grade of 327.2 g/t).
(All National Instrument 43-101 technical reserve reports can be found on SEDAR at: www.sedar.com).
Aurcana continues to focus on its future growth.
Aurcana Corporation is scheduling a webcast and conference call to discuss the third quarter 2013 results at 11.00am PST on Tuesday, November 13, 2012.
The webcast can be accessed via the following link:
Conference call details
Conference date: 13-Nov-2012
Conference time: 11:00AM Pacific Time
Participant dial-in number(s): 416-340-2217 / 866-696-5910 / 800-8989-6336
Participant pass code: 1204452
The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President & CEO
The scientific and technical information contained in this news release regarding the Shafter Silver Mine has been reviewed by Ken Collison, P.Eng., Director of the Company, and a Qualified Person ("QP") and scientific and technical information contained in this news release regarding the La Negra Mine has been reviewed by Baltazar Solano, P.Eng., and a QP, as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Project)
This news release contains certain forward-looking statements, including statements regarding forecast silver production, silver grades, recoveries, potential mineralization, exploration result, future plans and objectives of the Company and the business and anticipated financial performance of the Company. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Exploration results that include geophysics, sampling and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classified as a category of mineral resource. A mineral resource which is classified as "inferred" or indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others, risks related to international operations, unsuccessful exploration results, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
President & CEO
(604) 331-9333 or Toll Free: (866) 532-9333
Manager of Investor Communications
(604) 331-9333 or Toll Free: (866) 532-9333
(604) 633-9179 (FAX)